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Mexico Enacts 40-Hour Workweek Law as Stakeholders Negotiate Rollout

Discussions center on a phased adoption timeline with tax incentives to address small company cost pressures

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Un operario del sector industrial, en una imagen de archivo.
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Overview

  • Mexico’s federal labor law now mandates a 40-hour workweek, down from 48 hours per week
  • CONCANACO-SERVYTUR and other business groups are urging voluntary, staggered implementation beginning in 2026 and full payroll tax deductibility for small and micro enterprises
  • A barometer from the Consejo General de Economistas shows 62% of economists predict reduced productivity and 73% warn of negative impacts on small businesses without a flexible rollout
  • Banamex projects that, without gradual entry or fiscal support, GDP growth could shrink by 0.3–1 percentage point and inflation could rise by 0.1–0.4 percentage points
  • The International Labour Organization and World Health Organization emphasize that complementary measures—such as financial aid and training programs—will determine whether shorter hours boost well-being, productivity and formal employment